The aerospace industry slowed down during 2016 but continues to perform well. Growth rates are expected to fall from 3 percent in 2016 to 2 percent in 2017, according to Deloitte. Mexico has laid the foundations for its industry to grow and consolidate the supply chain. On the aviation side, the outlook is also positive. IATA forecasts that 2017 will be good for the sector as demand for cargo and passenger numbers grow. The organization also predicts that airlines’ profits will reach US$31.4 billion in 2017 but fuel, labor and maintenance costs will weigh. Profit margins have dipped from 4.9 percent in 2016 to 4.2 percent in 2017. Latin American airlines will hit US$800 million in profits and regional demand in the passenger sector will grow 7.5 percent.